A.T. Cross Company reported that its Cross Optical Group (COG), which owns the Costa and Native eyewear brands, grew revenue by 27 percent to reach $16.3 million in the fourth quarter ended Dec. 29, 2012. Operating income rose by 126 percent to $1.9 million. The performance marked COGs strongest fourth quarter to date.
For the full year, COGs revenues grew by14.9 percent to $83.3 million, while operating income grew by 24 percent to $13.4 million.
COGs strong performance was offset by results at the Cross Accessory Division (CAD), where revenues declined 1 percent to $30 million in the fourth quarter and were off 4.8 percent for all of 2012.
As discussed last year, we had originally expected flat year-over-year performance based upon stable economic conditions in Europe, said David G. Whalen, president and CEO A.T. Cross. As European economic conditions worsened, sales in that region declined 17 percent and were only partially offset by 3 percent increases in both the Americas and Asia regions. For 2013 we expect increasingly positive revenue performance in all three regions and success in extending the Cross brand into adjacent categories.”
A.T. Cross announced Feb. 4 that it had hired an investment bank to consider strategic options for CAD.
A. T. CROSS COMPANY | ||||
CONSOLIDATED STATEMENTS OF INCOME | ||||
(in thousands, except per share amounts) | ||||
(unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 29, | December 31, | December 29, | December 31, | |
| 2012 | 2011 | 2012 | 2011 | |
| Net sales | $ 46,359 | $ 43,278 | $ 180,508 | $ 174,637 |
| Cost of goods sold | 21,580 | 20,325 | 81,198 | 77,613 |
| Gross Profit | 24,779 | 22,953 | 99,310 | 97,024 |
| Selling, general and administrative expenses | 19,626 | 18,382 | 75,154 | 74,451 |
| Service and distribution costs | 1,836 | 1,810 | 8,174 | 7,830 |
| Research and development expenses | 653 | 673 | 2,708 | 2,697 |
| Operating Income | 2,664 | 2,088 | 13,274 | 12,046 |
| Interest and other income (expense) | 43 | 113 | (515) | (897) |
| Income Before Income Taxes | 2,707 | 2,201 | 12,759 | 11,149 |
| Income tax provision | 797 | 260 | 3,611 | 2,839 |
| Net Income | $ 1,910 | $ 1,941 | $ 9,148 | $ 8,310 |
| Net Income per Share: | ||||
| Basic | $ 0.15 | $ 0.16 | $ 0.74 | $ 0.68 |
| Diluted | $ 0.14 | $ 0.15 | $ 0.70 | $ 0.64 |
| Weighted Average Shares Outstanding: | ||||
| Basic | 12,612 | 12,229 | 12,335 | 12,195 |
| Diluted | 13,323 | 13,026 | 13,049 | 13,005 |
| Three Months Ended | Twelve Months Ended | |||
| December 29, | December 31, | December 29, | December 31, | |
| 2012 | 2011 | 2012 | 2011 | |
| Segment Data: Cross Accessory Division | ||||
| Net Sales | $ 30,025 | $ 30,450 | $ 97,222 | $ 102,131 |
| Operating Income (Loss) | 809 | 1,268 | (171) | 1,205 |
| Segment Data: Cross Optical Group | ||||
| Net Sales | $ 16,334 | $ 12,828 | $ 83,286 | $ 72,506 |
| Operating Income | 1,855 | 820 | 13,445 | 10,841 |
